Business expectations for 1997 March and December quarters (Media Release)

MEDIA RELEASE

January 06, 1997

Embargoed: 11:30 AM (AEST)

01/1997

Business expectations for 1997 March and December quarters

Medium sized businesses expect a decrease in profits of up to 14 per cent for the March quarter in 1997, according to the latestBusiness Expectations Surveyreleased today by the Australian Bureau of Statistics.

Large businesses expect a decrease in profits of up to eight per cent, while small business could expect an increase in profits of up to three per cent.

Sales for all businesses are expected to rise by 0.4 per cent. Profits are expected to decrease by up to 3 per cent which is the lowest projected decrease of any March quarter since 1993. The downturn is expected to be most marked for the retail sector.

For the March quarter in 1997, property and business services are expecting sharply increased profits. Capital expenditure is expected to rise by six per cent in all industries. Employment is expected to decrease by 0.4 per cent.

Sales for the December quarter 1997 are expect to rise by three per cent which is the smallest projected rise in the December quarter for three years. Businesses in property and business services expect a rise in sales of almost 7 per cent, with those in finance and insurance expecting a rise in sales of 4 per cent. The mining sector expects a sales rise of four per cent.

For the same period, profits are expected to rise by almost 10 per cent. Property and business services, mining and finance and insurance are expecting the strongest growth. Capital expenditure is expected to rise by 1 per cent and employment is expected to rise by 0.3 per cent.

However, for the December 1997 quarter small business expectations are less optimistic about trading performance than medium and large businesses, although they are expecting stronger employment growth than larger businesses.

Details on short and medium term business expectations are inAustralian Business Expectations, March quarter 1997 and December quarter 1997(cat. no. 5250.0) available from ABS bookshops.